Demand for mobile connectivity, no matter where on Earth—or above it—is increasing. Our performance in 2003 confirmed that Connexion by Boeing is well positioned to meet this need and, as the commercial airline market recovers, to deliver profitability and growth.

Connexion by Boeing meets the needs of people on the move, delivering the only airborne high-speed Internet, intranet and full-featured e-mail service available in the global mobile market. Airplane operators can also take advantage of our network’s broadband capacity and bandwidth to improve operational efficiency, enhance customer service and increase the flow of real-time information to flight crews.

Year in Review The year 2003 was pivotal for Connexion by Boeing as we successfully demonstrated service capabilities and signed agreements with five commercial airlines in Europe and Asia. We also continued to develop new markets where high-speed mobile connectivity can bring value to customers and leverage Boeing’s investment in a global communications network for people and platforms on the move.

We completed highly successful service demonstrations with Lufthansa German Airlines and British Airways, which generated significant media attention and consumer interest. As a result, Connexion by Boeing was awarded the World Travel Award for World’s Leading High-Speed In-flight Internet Service Provider. We also signed definitive service agreements with Lufthansa, Scandinavian Airlines System and Japan Airlines, and letters of intent with All Nippon Airways and Singapore Airlines. In addition, we continue to support U.S. Air Force requirements for connectivity services on their executive aircraft.

In 2003, the International Telecommunications Union approved radio frequency allocations, allowing us to obtain authorizations from individual nations as we expand our service to new markets and routes. We also joined with Rockwell Collins to bring broadband connectivity services to the small business jet market, and we continue to explore the possibility of extending our service to maritime markets and others.

In preparation for launching commercial airline service in 2004, we completed development of our cabin network and of our lighter, more capable and efficient Next-Generation Antenna. The new antenna will enable high-speed two-way connectivity at the higher latitudes traversed by many long-range air routes. We also upgraded our Network Operations and Enterprise Operations Centers, reached agreement with a number of satellite-service providers, and began construction of an Asia satellite gateway in Japan.

Future Outlook With the initiation of commercial airline service in early 2004 and the potential for extending our services to new markets, Connexion by Boeing is poised for growth over the next 5 to 10 years.